Winnebago posts sharply lower profit

The sluggish economy and higher fuel costs took their toll on third-quarter earnings reported Thursday by Winnebago Industries.

The Forest City-based recreational vehicle manufacturer posted third-quarter net income of $1.2 million, or 4 cents per share, compared with $6 million, or 21 cents per share, in the same quarter of 2010.  Winnebago recorded third-quarter revenue of $135.6 million, up 0.6 percent from $134.8 million in the same period of fiscal 2010.

Winnebago Chairman and Chief Executive Officer Bob Olson said the retail market for recreational vehicles softened in the third quarter, which was understandable given the state of the national economy and other factors.

 "While discouraging, it is understandable in the context of new job creation slowing in America, along with reports of falling home prices, declining auto sales, weaker consumer spending, the concern over rising fuel prices and the impact these issues are currently having on the stock market," Olson said in a statement accompanying the earnings repott. "We remain concerned the current recovery appears to be slowing."

Winnebago post net income of $8.3 million, or 28 cents per share, for the first nine months of fiscal 2011, up from $5.4 million, or 18 cents per share, for the first nine months of fiscal 2010. For the first nine months of 2011, Winnebago recorded revenue of $365.9 million, an increase of 12.1 percent, compared to $326.4 million for the first nine months of fiscal 2010.